1) the first-half results are in line with expectations. The company achieved revenue of 596 million yuan in the first half of the year, an increase of 19.72% over the same period last year, and realized a non-net profit of 94 million yuan, an increase of 57.98% over the same period last year (implied two-year compound growth rate of 26.22%), which was in line with expectations (55%).

2) the performance of Q2 has improved significantly. The company's Q1 and Q2's non-net profit increased by 111.16% and 35.36% respectively compared with the same period last year, with an implied two-year compound growth rate of 4.81% and 32.58% respectively; the company's Q1 and Q2 realized a comprehensive gross profit margin of 28.18% and 29.02% respectively, which increased by 1.95% and 5.52% respectively over the same period last year; and the ROE of Q1 and Q2 was 2.22% and 3.44% respectively, an increase of 0.07/0.62pct over the same period last year. We believe that the company's Q2 integrated logistics sector (high gross margin business) is gradually increasing, and its profitability continues to improve.

3) wait for the production capacity to be put into operation step by step, and the new business will increase in volume. The warehousing and logistics capacity of the company was gradually put into operation in the first half of the year, and Jiacheng International Port (Phase II) in Nansha Free Trade Zone entered the trial operation stage, which will be put into operation on a large scale during the year, during which the company added Lazada cross-border export business, benefiting from the high level of cross-border e-commerce in Southeast Asia, which started rapidly in the second quarter, contributing incremental revenue for the company. In the first half of the year, the company newly invested in the construction of a multi-functional logistics center in Haikou Comprehensive Free Trade Zone. During this period, the company leased its warehousing resources to Haifa Holdings and has begun to try out the duty-free logistics business in Hainan.

4) profit forecast and investment rating. According to our profit forecast for the company, from 2021 to 2023, the company's operating income was 100 million yuan in 17-22-28, an increase of 48%, 30%, 27%, and net profit of 2.35, 328, 000, We are optimistic about the location advantages of the company's own warehousing location, while considering the business growth brought about by joining the Cainiao network, and further opening up the growth space after entering the Hainan duty-free logistics market to maintain the "overweight" rating.

5) risk hint: the progress of the project is not as expected and the cooperation with rookies is not as expected.